Sinclair Refining Co. v. Reid

• Decision Date: 17 May 1939
• Docket Number: 27423.
• Citation: 3 S.E.2d 121,60 Ga.App. 119
• Parties: SINCLAIR REFINING CO. v. REID.
• Court: Georgia Court of Appeals

3 S.E.2d 121

60 Ga.App. 119

SINCLAIR REFINING CO. v. REID.

No. 27423.

Court of Appeals of Georgia, Division No. 2.

May 17, 1939

Clifton W. Brannon, of Atlanta, Walter Matthews, of Buchanan, and D B. Howe, of Tallapoosa, for plaintiff in error.

Edwards & Edwards, of Buchanan, for defendant in error.

FELTON Judge.

This action was brought by G. W. Reid against the Sinclair Refining Co. for damages

consisting of gasoline leakage and damage to realty alleged to have been sustained by Reid because of the negligent installation of a certain gasoline pump and negligent removal of a sign from the building of Reid. Upon the trial the jury returned a verdict for Reid, and to the order overruling the motion for new trial the company excepted. Counsel concede that this case is controlled by the construction of the contract involved, the pertinent provisions of which are hereinafter set forth.

The contentions of the plaintiff in error are: (1) That the provisions in the contract relieving the company from all liability for any loss or damage, etc., whether caused by the negligence of the company or not, preclude a recovery by defendant in error and that the general grounds of the motion for new trial should have been sustained; (2) that the court erred in charging the jury that Reid would be entitled to recover if the company damaged his roof in removing their sign because of the contract provision that the company would be relieved of all liability for damages sustained by Reid in the removal by the company of their equipment; (3) that the court erred in charging the jury that after notice of the leakage the company was under a duty to repair the gasoline pump.

The contentions of defendant in error are: (1) That the contract was contradictory in its terms, especially as to paragraphs 1 and 13 and to that extent ambiguous as to the true intention of the parties; (2) that the contract is against public policy in that it seeks to hold the company harmless for any damage caused by the gross negligence of the company; (3) that there is no consideration for the contract.

In order that the true intention of the contracting parties may be arrived at, we must construe the contract as a whole and not select separate paragraphs thereof for construction. The contract is one known as an "Equipment Rental Agreement." After naming the parties the contract recites that "in consideration of the sum of $1 *** and in consideration of the mutuality hereof and of the rentals provided herein *** (1) Sinclair hires and rents to customer and agrees to deliver to customer's place of business such equipment as Sinclair may from time to time deem necessary for the economical and convenient handling storing, dispensing advertising *** and customer agrees to pay Sinclair as rental for such equipment *** $1 per annum, payable in advance *** Sinclair shall have the right to substitute for any equipment placed with the customer other equipment of like character and quantity and in the event of such substitution this agreement *** shall apply to such substituted equipment. *** (3) *** that any equipment heretofore or hereafter delivered by Sinclair to customer whether or not evidence by said receipt, shall be subject to the terms and conditions of this agreement. It is understood and agreed that customer's acts of accepting such equipment *** shall be construed to be an acknowledgment by customer that the equipment *** was in good and serviceable condition at the time of its delivery. (4) Such equipment shall at all times be and remain the property of Sinclair. *** (5) Customer hereby agrees that it will, unless specifically exempted by Sinclair in writing from so doing, maintain such equipment in good condition and repair and pay all cost and expense in connection therewith. *** (6) In the event customer should at any time *** cease to purchase gasoline from Sinclair *** Sinclair shall have the right to declare this agreement terminated and, without notice to customer, may with men, vehicles, and necessary tools enter the premises whereon such equipment or any part thereof may be located and remove the same therefrom, whether affixed to the premises or located in, on or under the same, or not, *** without liability for damages resulting from so doing. *** (9) Upon the termination of this agreement *** Sinclair shall have the right and privilege of...